Ault Alliance, Inc. (NYSE American: AULT), a diversified holding
company (“Ault Alliance,” or the “Company”), reported
its financial results for the first quarter ended March 31, 2024,
which were disclosed on a quarterly report on Form 10-Q filed
yesterday with the Securities and Exchange Commission.
First quarter 2024 highlights include:
- Total revenue increased 55% to $44.9 million, compared to $28.9
million in the prior year’s first fiscal quarter;
- Revenue of approximately $3 million from Ault Global Real
Estate Equities, Inc. (“AGREE”), was not included in the
total revenue of $44.9 million as the assets of AGREE were
classified as discontinued operations as they were previously held
for sale;
- Revenue from digital assets mining increased 56% to $11.4
million, compared to $7.3 million in the prior year’s first fiscal
quarter;
- Revenue from lending and trading activities increased to $9.1
million, compared to negative $4.9 million in the prior year’s
first fiscal quarter;
- Gross margins improved to 43%, compared to 9% in the prior
year’s first fiscal quarter;
- Operating expenses declined 41% to $19.1 million, compared to
$32.3 million in the prior year’s first fiscal quarter;
- Income from operations improved to $0.4 million, compared to a
loss from operations of $29.9 million in the prior year’s first
fiscal quarter;
- Total assets of $299.8 million as of March 31, 2024; and
- Net income available to common stockholders of $2.5 million,
compared to a net loss available to common stockholders of $48.9
million in the prior year first fiscal quarter.
Milton “Todd” Ault III, the Founder and Executive Chairman of
Ault Alliance, expressed optimism about the Company’s trajectory,
noting, “We are beginning to see the results of our commitment to
focusing on and strengthening our key assets, as three of our main
reporting segments, Sentinum, Inc. (“Sentinum”), Technology
and Finance (“Fintech”) and Energy and Infrastructure
(“Energy”), all reported positive income from operations for
the fiscal quarter ended March 31, 2024. Only the Energy segment
reported positive income from operations during the comparable
period for the prior quarter. However, we recognize that the next
few quarters may present fluctuations in our results, due to
variables such as Bitcoin volatility and difficulty as well as the
dynamic, evolving artificial intelligence (“AI”) industry,
which we anticipate will significantly impact our future
operations.”
Further emphasizing its commitment to technological advancement,
Sentinum has made substantial investments in its Michigan data
center (the “MI Facility”), aiming to extract the maximum
possible value from the growing AI industry. This state-of-the-art
facility spans 34.5 acres with 617,000 square feet, including 14
acres under roof, and boasts a current capacity of approximately 30
megawatts (“MWs”) of power. However, the MI Facility has the
opportunity to expand to 300 MW, subject to the Company’s receipt
of necessary approvals and adequate funding, which it may or may
not obtain. The Company expects the MI Facility to dramatically
enhance sales and profitability. Sentinum is seeking to enter into
long-term leases with AI tenants for the MI Facility, which will be
expected to range between seven and ten years, positioning this
center to be a long-term major growth engine for the Company.
Ault Alliance is strategically positioning itself to capitalize
on technological advancements in AI, with its Sentinum business
segment expected to be a key growth driver. “The AI revolution is
underway, and our investments in the MI Facility are positioning us
to be a significant player in this burgeoning industry,” added Mr.
Ault.
Ault Alliance is committed to minimizing equity issuance and
currently plans to finance the significant expansion of the MI
Facility primarily through debt. This strategy aligns with the
Company’s fiscal goals and supports the expanding AI industry,
ensuring capital efficiency and sustainable growth.
The Company also notes that its Fintech segment continues to
experience, and is expected to continue to experience, wide
fluctuations in its profitability as its positions are marked to
the market.
Reflecting on the strategic plan launched in 2017 to acquire
assets and grow the Company’s topline across multiple sectors, Mr.
Ault highlighted the long-term vision, “It has been a bumpy road,
but we remain steadfast in our mission to build on our core
businesses and capitalize on emerging opportunities. By the end of
2027, assuming that we leased the Michigan data center and the
power generated there were upgraded to 300 MW, we would expect
revenues to exceed $500 million with gross margins in excess of
50%. The Company expects the large majority of this growth to be
driven by Sentinum and its data center operations.”
For more information on Ault Alliance and its subsidiaries, Ault
Alliance recommends that stockholders, investors, and any other
interested parties read Ault Alliance’s public filings and press
releases available under the Investor Relations section at
www.Ault.com or available at www.sec.gov.
About Ault Alliance, Inc.
Ault Alliance, Inc. is a diversified holding company pursuing
growth by acquiring undervalued businesses and disruptive
technologies with a global impact. Through its wholly and
majority-owned subsidiaries and strategic investments, Ault
Alliance owns and operates a data center at which it mines Bitcoin
and offers colocation and hosting services for the emerging
artificial intelligence ecosystems and other industries, and
provides mission-critical products that support a diverse range of
industries, including metaverse platform, oil exploration, crane
services, defense/aerospace, industrial, automotive,
medical/biopharma, hotel operations and textiles. In addition, Ault
Alliance extends credit to select entrepreneurial businesses
through a licensed lending subsidiary. Ault Alliance’s headquarters
are located at 11411 Southern Highlands Parkway, Suite 240, Las
Vegas, NV 89141; www.Ault.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements generally include
statements that are predictive in nature and depend upon or refer
to future events or conditions, and include words such as
“believes,” “plans,” “anticipates,” “projects,” “estimates,”
“expects,” “intends,” “strategy,” “future,” “opportunity,” “may,”
“will,” “should,” “could,” “potential,” or similar expressions.
Statements that are not historical facts are forward-looking
statements. Forward-looking statements are based on current beliefs
and assumptions that are subject to risks and uncertainties.
Forward-looking statements speak only as of the date they are
made, and the Company undertakes no obligation to update any of
them publicly in light of new information or future events. Actual
results could differ materially from those contained in any
forward-looking statement as a result of various factors. More
information, including potential risk factors, that could affect
the Company’s business and financial results are included in the
Company’s filings with the U.S. Securities and Exchange Commission,
including, but not limited to, the Company’s Forms 10-K, 10-Q and
8- K. All filings are available at www.sec.gov and on the Company’s
website at www.Ault.com.
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Ault Alliance Investor Contact: IR@Ault.com or
1-888-753-2235
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